In March, Commencement Set for ML-1 and KCR Upgrade Initiatives within the Framework of CPEC

Key Railway and Infrastructure Projects to Boost Connectivity and Trade in Pakistan

In March, Commencement Set for ML-1 and KCR Upgrade Initiatives within the Framework of CPEC


In a recent high-level meeting held in Beijing, it was decided that work on two major projects within the China Pakistan Economic Corridor (CPEC) would commence in March. These projects, namely Main Line-one (ML-1) and Karachi Circular Railways (KCR), are set to follow the consensus reached between both nations in October of the previous year.

In a recent high-level meeting held in Beijing, it was decided that work on two major projects within the China Pakistan Economic Corridor (CPEC) would commence in March. These projects, namely Main Line-one (ML-1) and Karachi Circular Railways (KCR), are set to follow the consensus reached between both nations in October of the previous year.

The Chinese Ambassador to Pakistan, Nong Rong, announced that the China-aided Eastbay Expressway at Gwadar port has been operational since June, significantly enhancing port connectivity. Notably, the port now transports 0.2 million tonnes of fertilizer.

Under the CPEC initiative, Pakistan has witnessed substantial development, with 192,000 jobs created, 6,000MW of electricity generated, 510 km of highways constructed, and 886 km of transmission lines established. These achievements have laid a robust foundation for Pakistan's socio-economic growth. Ambassador Nong Rong even anticipates that Pakistan's trade surplus in agricultural products could exceed a record high of $1 billion in 2022.

The crown jewel of CPEC, the ML-1 project, with a budget of $6.86 billion, involves upgrading and dualizing the ML-1 railway line, aiming to increase its operating speed from 60 km/h and 105 km/h to an impressive 160 km/h. The project also includes the establishment of a dry port near Havelian. Stretching from Karachi to Peshawar, the ML-1 line is one of Pakistan's main railway arteries, serving as the primary passenger and freight route. A significant portion of the country's cargo and passenger traffic, approximately 75%, relies on the ML-1. The project's timeline extends to December 2024, during which level crossings will be transformed into flyovers or underpasses to enhance speed and efficiency.

Unfortunately, the project's launch was delayed during the PTI government due to concerns from China regarding the debt repayment plan. Nevertheless, the ML-1 railway upgrade holds immense strategic value as it will facilitate seamless transportation of oil between Gwadar and Kashgar, reducing costs for China. Moreover, it promises quicker access to Special Economic Zones (SEZs) and swift delivery of goods to remote regions and the Gwadar port. Additionally, the railway will play a pivotal role in transporting coal to power plants, generating substantial revenue for the railways. Regrettably, the project faced cost overruns, partly due to delays and the devastating floods that damaged railway lines across Pakistan. It wasn't until April 2022, when Pakistan's Minister for Planning, Ahsan Iqbal, reinitiated discussions with Chinese authorities to revive the project.

The revival of KCR aims to establish an inter-regional public transit system in Karachi, connecting the city center with various industrial and commercial districts, along with outlying localities. Initially approved in May 2017 with a restoration package of Rs27.9 billion ($120 million), funding disputes with the Sindh provincial government led to its cancellation. The re-envisioned KCR, costing Rs294 billion, is expected to cater to 500,000 passengers daily, eventually increasing to 1 million passengers. It will feature 250 modern driverless electric bullet trains, operating 17 hours a day, seven days a week, and is set to be managed by the Sindh government through the Karachi Urban Transport Corporation (KUTC), with a completion target of 2025.